Fill in the response.  -What are the problems of hot money?. -However, large and sudden inflows of capital with a short term investment horizon have negative macroeconomic effects, including rapid monetary expansion, inflationary pressures, real exchange rate appreciation and widening current account deficits.. -Are there any other interesting aspects about this article?. -Especially, when capital flows in volume into small and shallow local financial markets, the exchange rate tends to appreciate, asset prices rally and local commodity prices boom.. -Is there anything else noteable about the problems of hot money?. -These favorable asset price movements improve national fiscal indicators and encourage domestic credit expansion.. -Do they help the economy in which they are used?. -
These, in turn, exacerbate structural weakness in the domestic bank sector.